Gordhan: Gupta-linked Pita's resignation from Transnet 'does not absolve him' | Fin24
 
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Gordhan: Gupta-linked Pita's resignation from Transnet 'does not absolve him'

Apr 19 2018 20:41
Fin24

Cape Town - Minister of Public Enterprises Pravin Gordhan, whose appointment was seen to clean up the country's troubled state owned enterprises, welcomed the resignation of Transnet's chief financial officer Garry Pita.

However, the department has made it clear that Pita's stepping down does not absolve him of accountability for possible wrongdoing.

Pita resigned from the rail and port company on Thursday. In an earlier separate statement Transnet said Pita quit due to ill-health and strain.

The acting deputy director general in the Department of Public Enterprises, Makgola Makololo, said on Thursday evening that Pita's resignation had been welcomed by Gordhan. 

"Transnet has been faced by a series of allegations of deep corruption and malfeasance with highly suspicious and questionable financial transactions to the detriment of Transnet and its reputation," read the statement.

"The current board is yet to provide credible explanations of how such transactions were approved or indeed condoned over successive financial years."

"It also needs to explain how it had exercised its fiduciary duties in the context of a plethora of information in the public domain showing how Transnet became a target of state capture."  

Makololo added Pita's resignation "does not absolve him of accountability should he be found to have had a role in any way or form".

As Fin24 previously reported, Pita was implicated in endorsing a memorandum, drafted by then Transet CFO Singh, to engage in a contract with Neotel in February 2015. The deal was tainted with allegations of nearly R66m in kickbacks, paid by Neotel with the help of a letterbox company called Homix, which was linked to the Gupta family.

In 2016, Pita signed off on invoices authorising Transnet to pay R74m to Gupta-linked company Trillian Capital Partners for work done between February 2016 and June 2016. 

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